The figure on the right shows an example of a cup with handle chart pattern. Cup and handle chart patterns can last anywhere from seven to 65 weeks.
The rise leading to the cup with handle begins at c and reaches the left cup lip at point a since this is on the weekly scale the price chart appears narrower than usual but price rounds downward forming a cup with the right cup lip at b the handle lasts a few weeks before price begins.
Cup with handle chart. This is usually illustrated be a decrease in volume on the left side of the cup. Cup and handle pattern recognition. The psychology of the cup and handle pattern is as follows.
The cup has a soft u shape retraces the prior move for about and looks like a bowl. Then it has a 12 33 drop from its high. Some of us may not be rocket scientists.
The cup with handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. However everyone i know has used a cup in their lifetime. Cup and handle check out the trading ideas strategies opinions analytics at absolutely no cost.
A reversal pattern occurs when the price is in a long term downtrend then forms a cup and handle that reverses the trend and the price starts rising. A continuation pattern occurs during an uptrend. A cup and handle chart may signal either a reversal pattern or a continuation pattern.
It was developed by william o neil and introduced in his 1988 book how to make money in stocks. If the handle is too deep and it erases most of the gains of the cup then avoid trading the pattern. A cup and handle can be used as an entry pattern for the continuation of an established bullish trend.
After forming the cup price pulls back to about of the cups advance forming the handle. The price is rising forms a cup and handle and then continues rising. It s one of the easiest patterns to identify.
A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a u and the handle has a slight downward drift. The u part of the cup is where prices slowly fall this wears out speculators. Rather than trying to define what a cup and handle pattern is in words it s best to use a picture to illustrate the pattern.
The cup and the handle. Cup handle pattern technical fundamental stock screener scan stocks based on rsi pe macd breakouts divergence growth book vlaue market cap dividend yield. It starts when a stock s price runs up at least 30 this uptrend must happen before the cup base s construction.
Hi every one kindly like the ideas if it is helping you and leave a comment psychology of cup and handle pattern. Cup and handle definition. The cup and handle is one of the easiest chart patterns to identify because we all can recognize a cup.
As its name implies there are two parts to the pattern. A cup and handle is considered a. Education and learning.